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Starting a business to help people save money

I live in an area with a lot of elderly people who I'm assuming will not be getting the best value for money in a lot of areas of their lives.

I'm planning on starting a small business to help these people and to make a little for myself in return.

Ideas that I've had so far are:

* Buying a thermal camera so that I can show the customer where their house is losing heat and offer economical suggestions to improve it.

* Looking at their utility bills and seeing if I can get them better offers (and potentially benefiting from cashback from topcashback etc. in the process, though I'm aware that I may not qualify as it won't be for my details).

* Ditto for insurance.

* Suggest ways to save water/electricity/gas

I wouldn't want money upfront for any of this, rather that they give me a percentage of the amount they save once they have made a saving.

I'm mostly intending to do this to help people, rather than make money but it would be nice to make a little.

My main concern is what can I do legally, without having qualifications.

Ideas of how I could work this and take payment would also be appreciated.

I am already registered as self-employed.

Many thanks.
«13

Comments

  • Debbie9009
    Debbie9009 Posts: 348 Forumite
    Third Anniversary 100 Posts Name Dropper
    I have elderly parents and they are very good at saving money, and shopping around for the best deals, and as a family we share information on good deals we have found.  Also both my water and energy companies regularly send out information on money saving tips.  So it’s not something I or my elderly parents would pay for.

    You also would need people to give you their information and let you into their homes to do some of what you are suggesting, my parents wouldn’t let anyone in without a way of identifying them as working for a particular company, which is an issue I think you might come across especially as you are wanting to carry this out for elderly people.  

    Also how are you going to make sure you get a percentage of the savings, are you going to have a contract, and what will you do if people don’t pay.  How will you know how much your customers have saved when the bills will be in their names ?

    I think this might be a difficult way to make money, if you do get customers, the savings may well be small, so you wouldn’t get a lot for your time.  

    Maybe approach people you know (not just elderly) and try your ideas out on them, see how easy it is to make savings and how much you would earn, this would give you some idea as to whether your would make much money.
  • tacpot12
    tacpot12 Posts: 9,028 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    edited 22 January pm31 9:03PM
    I think the main issues are:
    • that you are competent to give the advice you are giving (among other things this means that you must be thorough in your research, but you can reuse research across client providing that you check it is still current)
    • that you understand what you can't give advice about and make sure you respect these boundaries (you can still help your clients by referring them to people who can help, but you need to be careful about not recommending other advisers as you might then be perceived as being responsible for their performance)
    • that you understand how you are allowed to collect and use personal data (you will need a regsitration with the Information Commissioner)
    • you might need insurance if you are going into someones home, in case you injure anyone or cause any damage
    • you will need to keep some records to show that your advice was reasonable in the client's situation
    • if you are going to act for a client, you need a very clear and precise mandate from the client - I would recommend that in all cases, changes are either made by the client or by a profession (in the case of improvements to their home)
    • you will need to figure out a pricing structure. For simplicity, it would be sensible to have a percentage figure in mind and to pre-agree this with the client. Once you have a reputation and are having clients referred to you, you could ask for a retainer fee (e.g. £50) to cover your reserach in case you cannot find any way to save the client money. However, in the short term, you will need to vet your clients to check that they are a good candiate for your services, i.e. it is highly likely that you will be able to save them enough to make it worth both your whiles. If you are to receive a percentage of how much the client is expected to save, I would recommend asking for payment as soon as the changes have been made that will produce the savings, while being careful not to guarantee that they will save that amount or any amount at all. This might sound unfair, but you need to avoid creating a situation where a client is entitled to a refund in the client doesn't make a saving for reasons that are beyong your control. 
    Good luck! It sounds very worthwhile. 
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • I would start by querying your initial assumption about your target market. 

    tacpot12 has listed lots of good points. 
    Things that are differerent: draw & drawer, brought & bought, loose & lose, dose & does, payed & paid


  • penners324
    penners324 Posts: 3,366 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    It screams of potential fraud. Any relatives would want full information about the company you work for and possibly even a DBS certificate, there are huge Safeguarding issues of just going into an elderly person's home.
  • Bookworm105
    Bookworm105 Posts: 1,743 Forumite
    1,000 Posts Name Dropper
    edited 22 January pm31 10:19PM
    heat loss - existing competitive market so you presumably intend to chase to the bottom on price of survey and then what? Are you trained on building design and how to calculate insulation values? Double glazing window salesman breathing down your neck?

    utility - join a list of existing middlemen who already do this with the support of very large organisations doing the marketing for them - why not just become a Utilities Warehouse leech agent

    insurance - start a web comparison service such as.... the one MSE already offers 

    usage cutbacks -  given your intended target market I doubt many of them would need you to show them how to live frugally
  • penners324
    penners324 Posts: 3,366 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    tacpot12 said:
    I think the main issues are:
    • that you are competent to give the advice you are giving (among other things this means that you must be thorough in your research, but you can reuse research across client providing that you check it is still current)
    • that you understand what you can't give advice about and make sure you respect these boundaries (you can still help your clients by referring them to people who can help, but you need to be careful about not recommending other advisers as you might then be perceived as being responsible for their performance)
    • that you understand how you are allowed to collect and use personal data (you will need a regsitration with the Information Commissioner)
    • you might need insurance if you are going into someones home, in case you injure anyone or cause any damage
    • you will need to keep some records to show that your advice was reasonable in the client's situation
    • if you are going to act for a client, you need a very clear and precise mandate from the client - I would recommend that in all cases, changes are either made by the client or by a profession (in the case of improvements to their home)
    • you will need to figure out a pricing structure. For simplicity, it would be sensible to have a percentage figure in mind and to pre-agree this with the client. Once you have a reputation and are having clients referred to you, you could ask for a retainer fee (e.g. £50) to cover your reserach in case you cannot find any way to save the client money. However, in the short term, you will need to vet your clients to check that they are a good candiate for your services, i.e. it is highly likely that you will be able to save them enough to make it worth both your whiles. If you are to receive a percentage of how much the client is expected to save, I would recommend asking for payment as soon as the changes have been made that will produce the savings, while being careful not to guarantee that they will save that amount or any amount at all. This might sound unfair, but you need to avoid creating a situation where a client is entitled to a refund in the client doesn't make a saving for reasons that are beyong your control. 
    Good luck! It sounds very worthwhile. 
    So you'd need to pay for proper record keeping system that is GDPR compliant, and accounts system to properly track the fees you're receiving.

    Potentially an Independent Financial Advisor qualification to make everything above board, etc etc.

    So much red tape and expense there, would it be worth it?
  • Debbie9009
    Debbie9009 Posts: 348 Forumite
    Third Anniversary 100 Posts Name Dropper
    You may also need to look into personal liability insurance that will protect you if you accidentally give someone the wrong, particularly in regards to insurance.

    Also if the advice you give means the customer has to purchase something, for example better double glazing, you may find a customer will argue that you haven’t made them any savings until the cost of the windows have been covered, so you need to make sure your contract is clear on this so that you don’t loose out.
  • Grumpy_chap
    Grumpy_chap Posts: 17,085 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Combo Breaker
    JamesM_2 said:
    I live in an area with a lot of elderly people who I'm assuming will not be getting the best value for money in a lot of areas of their lives.

    I'm planning on starting a small business to help these people and to make a little for myself in return.

    Ideas that I've had so far are:

    * Buying a thermal camera so that I can show the customer where their house is losing heat and offer economical suggestions to improve it.

    * Looking at their utility bills and seeing if I can get them better offers (and potentially benefiting from cashback from topcashback etc. in the process, though I'm aware that I may not qualify as it won't be for my details).

    * Ditto for insurance.

    * Suggest ways to save water/electricity/gas

    I wouldn't want money upfront for any of this, rather that they give me a percentage of the amount they save once they have made a saving.

    I'm mostly intending to do this to help people, rather than make money but it would be nice to make a little.

    My main concern is what can I do legally, without having qualifications.

    Ideas of how I could work this and take payment would also be appreciated.

    I am already registered as self-employed.

    Many thanks.
    I can't see anything here that is not already covered by charitable organisations.
    Except the charitable organisations are not seeking to fleece the vulnerable as part of the plan 
  • lincroft1710
    lincroft1710 Posts: 18,358 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Forget it, you're offering nothing that it isn't already available
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • silvercar
    silvercar Posts: 48,698 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    Forget it, you're offering nothing that it isn't already available
    I'm not sure that is true. I help out in the community, giving lifts to the elderly. I have an enhanced DBS (that a local community group paid for). They often talk to me about how expensive their bills are etc. I tell them to check comparison sites or ask their family to help them do so.

    The danger I feel is if family members think you are muscling in on their territory, even though they are not getting too involved themselves. Families are all different, there is the danger that you could be accused of trying to take advantage of the vulnerable.

    I also think that the elderly (as the group I talk to a lot) would be reluctant to pay out money in the hope of reduced bills.
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